The 2009 Preqin PE Cleantech Review - Sample Pages The 2009 Preqin Private Equity Cleantech Review - Sample Pages © 2009 Preqin Ltd 1 The 2009 Preqin PE Cleantech Review - Sample Pages Contents 1. Executive Summary 7 12. Top Cleantech Firms 113 - League tables of top 10 pure cleantech venture and infrastructure fi rms. 2. Data Sources 13 13. Overview of Cleantech Fund Manager Universe 117 3. Overview of the Private Equity Cleantech Market 17 - Fund strategies and fund manager location, target investment size, annual revenue - Cleantech sub-sectors, breakdown of private equity cleantech fi rms by type, growth and company value, holding period and shareholding preferences, industry focus, in the number of cleantech funds, growth in the number of generalist private equity applied strategies, expertise provided, investment stage and position. funds including investments in cleantech, growth in the number of private equity fi rms investing in cleantech, cleantech fund size evolution. 14. Fund Manager Views on Current and Future Market Prospects 127 - Comments from leading cleantech fi rms on current and future prospects for the 4. Private Equity Cleantech Fundraising Overview 25 cleantech market. - Private equity cleantech fundraising: 2003 - April 2009, proportion between pure cleantech funds and diversifi ed funds over time. 15. Private Equity Cleantech Firm Profi les 131 - Detailed profi les for 380 fi rms managing cleantech private equity funds. 5. Private Equity Cleantech Fundraising Analysis: 2004 - April 2009 29 - Overview of cleantech funds closed: 2004 - April 2009, fundraising by regional 16. Analysis of Fund of Funds in Private Equity Cleantech 361 focus, fund type, fund size, time spent on the road, placement agents and law fi rms. - Vintages of cleantech fund of funds vehicles, sizes of cleantech fund of funds vehicles, geographical focus of cleantech fund of funds vehicles, strategy 6. Listings of Private Equity Cleantech Funds Closed Historically 37 preferences of cleantech fund of funds vehicles, other private equity fund of funds vehicles. 7. Current Private Equity Cleantech Fundraising Market Analysis 63 - Cleantech funds currently on the road by fund type, regional focus, fund size, time 17. Review of Institutional Investors in Private Equity Cleantech 365 spent on the road. - Investor interest in cleantech, types of LPs investing in cleantech, investor preferences for cleantech investments, the year ahead. 8. Listings of Private Equity Cleantech Funds on the Road 71 18. Profi les for Investors in Private Equity Cleantech Funds 373 9. Performance of Cleantech Funds 89 - Detailed profi les for 153 institutional investors in cleantech private equity funds. - Returns being targeted by cleantech funds, target performance by fund type, capital available and unrealised value. 19. Index 439 - Cleantech Fund Manager Profi les 10. Listings of Cleantech Fund Performance 93 - Institutional Investors - Key performance metrics for 54 named cleantech private equity funds. - Figure Index 11. Private Equity Cleantech Firm Preferences 97 20. Other Publications 447 - Matrix showing fi rm preferences by location, strategy and cleantech sub-sector. - Other Preqin Products © 2009 Preqin Ltd 2 1. Executive Summary - Sample Pages nine purely cleantech focused vehicles of 2004 vintage, funds and in terms of funds that include cleantech 2007 saw 41 cleantech focused funds commence their amongst a number of industries they invest in. Executive Summary investment periods and 2008 saw 39 purely cleantech funds begin investing. Within the 2009 Review we list all funds closed historically and all funds currently raising, with information and Overall, out of all the funds that have closed to date analysis on fund size, focus, regional preferences, Private Equity Cleantech: A Booming Sector which allocate some proportion of their capital to sample investors and more. cleantech investments, approximately 34% are solely Since 2005, the number of funds that include cleantech focused on the cleantech market, whilst around 66% What Kinds of Funds Are Being Raised? investments as part or all of their industry scope has include cleantech as one of a range of industries they grown rapidly. As shown in Fig. A, the number of private look to invest in. As Fig. B shows, more than three-quarters of private equity funds that commenced making investments equity fund managers that are involved to some extent in 2008 and included cleantech in their investment These fi gures demonstrate how the private equity in investing in cleantech primarily manage venture mandates nearly quadrupled from the number in 2004, cleantech sector has been expanding rapidly over recent capital funds. 13% of fi rms manage infrastructure funds, which was the fi rst vintage year to see a signifi cant years. Despite the slowdown in the global economy, this whilst 7% manage buyout funds. 3% of fi rms manage number of funds begin to make cleantech investments, sector seems set to continue its growth with a total of other types of private equity funds, such as mezzanine increasing from 30 in 2004 to 117 in 2008. 78 cleantech focused funds currently in market seeking and balanced funds. investment. It is likely that we will see a record number A similar trend can be seen when only examining funds of funds commencing investment in the cleantech sector that are focused solely on cleantech. While there are just during 2009, both in terms of solely cleantech focused Fig. A: Number of Cleantech Funds Commencing Investment Fig. B: Breakdown of Private Equity Cleantech Firms by Primary by Vintage Year Fund Type Focus Number of Funds © 2009 Preqin Ltd 3 1. Executive Summary - Sample Pages Where Are Managers Based? Fig. C: Breakdown of Private Equity Cleantech Firms by Regional Location As shown in Fig. C, 45% of private equity fund managers that invest in the cleantech sector are based in North America. As well as being the most signifi cant world hub for venture capital in general, Silicon Valley is also known as a major base for the cleantech industry specifi cally. 36% of fund managers that invest in the cleantech sector are based in Europe and 19% are based in Asia and Rest of World. Cleantech research and development may have its origins in the US, but these fi gures show that it is increasingly becoming a global sector. With emerging markets such as India and China becoming important centres of activity for the cleantech private equity industry, a good knowledge of all the different managers in both the established and also these newly emerging markets is essential intelligence for all those involved in the cleantech industry. Within the body of the 2009 Preqin Private Equity Cleantech Review we examine all managers involved in the of their private equity portfolio, or as an allocation within correlate with those of the private equity market as a sector from around the world, including information on a specifi c energy focused investment portfolio. Many whole. industry focus and funds raised alongside direct contact feel that the market has the potential for a high level information. We also analyse and list the performance of of growth and consequently that possible future profi ts Cleantech funds are attracting attention from a wide 54 funds, allowing for the assessment of the strongest are high. range of different types of investor. Fund of funds performing GPs. managers account for 19% of investors that have Whilst for some, cleantech forms a key part of their overall previously invested in cleantech funds, and are an Institutional Investor Interest in Cleantech investment strategies, for others, cleantech investments important investor group in funds of this type. Public are increasingly forming a small but meaningful part of pension funds account for a further 15% of investors For investors that aim to make responsible investments, their portfolios. Not only are these investors interested in these vehicles. Several of the most signifi cant the cleantech sector offers the opportunity to address in the positive benefi ts of successful developments in investors in cleantech fall into this category, many of sustainability issues whilst simultaneously creating the cleantech industry and the potential fi nancial gains which specifi cally operate programs or have set specifi c long-term value. Investment in the sector has the brought about by such investments, but many are allocations to the sector. potential to have a positive impact on the world, and also attracted to the diversifi cation benefi ts of having many investors have set aside mandates specifi cally for an allocation to the industry within their portfolios, as In terms of investor location, the cleantech industry is cleantech investments – whether that be as an offshoot fl uctuations in the cleantech market do not necessarily attracting a signifi cant amount of attention from European © 2009 Preqin Ltd 4 1. Executive Summary - Sample Pages LPs, with investors from this region accounting for 48%, of all investors with a preference for cleantech funds. North American LPs account for 34% of investors in the sector, while Asia and Rest of World based investors account for the remaining 18%. Within the 2009 Preqin Private Equity Cleantech Review we provide an in-depth analysis of institutional investors in the cleantech market, with a separate analysis showing the growing trend of specifi c cleantech fund of funds vehicles. We have profi les for the most important 153 investors in cleantech worldwide, including investment plans, sample previous investments, and direct contact details. The 2009 Preqin Private Equity Cleantech Review The growth in the private equity cleantech market ties in with the increasing consumer and investor awareness of climate change and environmental issues, growing levels of regulations and incentives provided by national governments and the ever-increasing global demand for energy and improvements in technologies within the cleantech sector. These factors have assisted in improving the potential profi tability of the market, with increasing numbers of private equity and venture capital fund managers seeing suitable opportunities opening up for investment, and a high proportion of investors in private equity now seeking to gain exposure.